Travel insurance policies that now consider Covid-19 an illness that may cause a trip to be canceled still don’t cover all Covid-related travel issues.
These could include new quarantine requirements on arriving travelers that cause changes of heart about trips or a general concern about traveling because of rising cases.
The best way to protect yourself in these situations is to buy a Cancel for Any Reason policy or CFAR. It increases your premium by about 40% — a standard 1,000-dollar cancellation policy, for example, would increase to 1,400 dollars.
Also, CFAR typically only reimburses travelers 75% of the cost of their trip, compared with the 100% that a cancellation policy does.
Despite the higher cost, experts recommend CFAR to travelers who have any Covid-related concerns.
CFAR policies have become far more popular since the onset of the pandemic than they were before as “you have less to prove when you’re trying to get your money back.”